VOL. XLVL-NO. 14,692. PORTLAND, - OREGON, THURSDAY, JANUARY. 9, ,1908. PRICE FIVE CENTS. CONTROL OF BUNK LOST B! HEME Another Blow to Fallen Copper King. GOULD TAKES BACK HIS . BANK Mercantile National Again in Former Hands. MORSE AND THOMAS OUT T'nahle to Raise $1je00,000 Due, Heinze GItcs Up Ho Pleads Not Guilty to Indictments May Have Suit Against Morse. N BW TORK. Jan. 8.' Unable to meet payments due on his stock In the institu tion today, F. Augustus Heinze lost con trol of the Mercantile National Bank, the conduct of which as its president had brought about his arraignment in the United States Circuit Court earlier In the day on charges of over-certification. One year ago . Heinze bought a con trolling Interest from Edwin Gould, with whom he pledged his holdings as security for his promise to pay for them In full within one year. The loan of $1,200,000 was due today to Edwin Gould and Will lam Nelson Cromwell, who was a mem ber of the Gould party in the bank be fore the Mercantile was added to the Heinse-Morse-Thomas chain of financial bouses. Up to the last moment allowed him Heinze struggled to meet his obli gations and so to retain his banking In terests. Mr. Cromwell said that the' Gould In terests would assume their proper place in the bank board at the meeting on January 14. This Implies, of- course, that the so-called Heinze directors- will then retire. Heinze Pleads-Not Guilty. ' This morning Heinze (now under bail consequent upon an Indictment by the Federal grand jury on a charge of over certifying checks of his brother's bro kerage firm. Involving $460,000) was ar raigned before Judge Chatfield. A plea of not guilty was entered and permission was had to alter or withdraw it, or to make any other desired motions later. An adjournment was ordered until Jan uary SO. When the ' final pleas will be made. Ball of $50,000 was secured. It was reported today that other men. s prominent as Heinze in Wall street operations, were to be called before the Federal authorities to plead to similar indictments; -Who they are. when they are to be arrested, could not be learned at the United States District Attorney's office. 'The grand jury Is not yet through with Its Inquiry into certain banking con ditions exposed by the recent financial flurry. Upon leaving the Federal building. Heinze had nothing to say further than that he would not leave the city until a disposition of his case bad been made. Soon afterward, accompanied by his counsel, Edward Lauterbach, Heinze Joined Edwin Gould and Mr. Cromwell In the conference which ended in his i turning to them the bank shares for which he was unable to pay. Rise and Fall of Heinze. After'the collapse of the United Copper pool and the subsequent clearing-house Investigation of the Mercantile National Bank, when Heinze resigned the presi dency and the directors likewise resigned, the copper magnate declared that he would still hold his stock. The bank. however, had been adversely affected by the' trouble and It was generally be lieved that a way would be found again to bring it undor the Gould influences, This opinion came true today. The new directorate installing the former manage ment Is expected to restore the Institu tion to Its old-time standing. -. For years the Mercantile National Bank bad been under control of the Gould in terests, and then Heinze, who was branching out as a banker, and with as sistants striving to secure direction of number of local' banks, obtained about SCO shares of the stock from Edwin Gould and loio froip Mr. Cromwell. It was re- . ported at the time that the purchase price was $325 per share. Heinze paid part cash and gave his notes - for the remainder. These notes, it is said, ran for six months, when they were renewed. Charles W. Morse and Orlando' Thomas had pre viously secured considerable of the bank's stock, and With Helnze's holdings, they were easily able to make him president and to elect the directorate. Both Mr. Morse and the Thomases are supposed to have -disposed of their Interests. May Hare Lawsuit With Morse. Concerning a report that Heinze and Morse had a misunderstanding over the Ill-fated bull campaign In United Copper, which was about to culminate In. a law suit. John C. Tomlinson. personal counsel to llelnse. said tonight: "No papers have been drawn. It is true that there has been a general dis cussion of Mr. Helnze's affairs, but no definite action in any direction has been decided upon. The relations of Mr. Heinze and Mr. Morse have been most . pleasant." . Discussing today's developments infor mally tonight. Mr. Cromwell said: "Now that Mr. Heinze no longer has anything to do with the Mercantile Na tional Bank in any official capacity, we intend to begin to reconstruct the bank. It Is now our Intention to proceed to re gain the ground that has been- I06V It had always been a good old, conservative fr Institution with an excellent business, and we believe that it will recover within a short time under ' the interests which now have control. There, can be no more talk .about possible liquidation of the bank." ' CONTEST OVER XAXD DIVISION Augustas Heinze Objects to Canadi an Pacific's Scheme. VANCOUVER, B.:'C., Jan. 8. (Special. Though, the financial stringency is sup posed to have been keenly felt by F. Augustus Heinze In New Tork,. that re sourceful American mining and stock op erator has not changed his ' mind . re specting large land and timber areas which ha owns in British Columbia. He still does not wish to have forced upon him bis undivided half interest In the SOO.OOO acres of the land grant which he Jointly owns with the Columbia & west ern Railway, one of the subsidiary cor porations of the Canadian Pacific Rail way -Company in British Columbia. While still undivided, these immensely John V. Ml tier. Prominent Fac tor la an Kit-Ulna- Mayoralty Race In Seattle. valuable lands of . West Kootenay are not subject to taxation. It Is said that this was the chief reason that the division of the land was opposed by Heinze, whose Vancouver lawyer, W. J. Bowser, fought the proposal of the Canadian Pacific Rail way to. divide in a long-drawn-out case in the Supreme Court In Vancouver. Jus tice Clement gave Judgment In .favor of ne vanauian macule niuiway niiu ui dered the division of the land. On behalf of Heinze' an appeal was to day entered In Vancouver and' the case will soon be before the full court. It is altogether likely that It will be taken before the Privy Council In England, be fore either Heinze or the other side is satisfied. It is significant that Heinze would probably accept his Interest and dispose of it if he needed money badly. BROWN AND BARTNETT APPEAR No Delay In Trial of Accused Bank Wreckers. SAN FRANCISCO, Jan. 8. James Dal zell Brown, general manager; Walter . J. Bartnett, vice-president. and . James Treadwell, director of the California Safe Deposit & ' Trust Company," were - ar raigned before Judge Dunne this ' morn ing on the indictments returned by -the grand jury, charging them with embez zlement ,in connection with making loans to themselves while officials of the wrecked bank. Both the pjeas of the de fendants on these charges arid on the in dictments charging Brown and Bartnett with embezzling the Colton Estate secur ities, valued at $206,000. previously re turned by the grand Jury,- were con tinued until January 15. Judge. Dunne declared that the court would not per mit any - further delay In the trial of the accused bankers, The story published that BVown and Bartnett would" plead guilty and throw themselves upon the mercy -of-the cottrt was emphatically denied by both. The grand Jury this afternoon -resumed Its Investigation into the affairs of the California Safe Deposit & Trust Com pany. " ' . . Hoards Total $276,000,000. - NEW YORK, Jan. &. According to the monthly circular of the - National City Bank $2;6,0O0,OOO In. v.sh disappeared be tween the call for the condition of the National banks responded to last August, and the one last month. This Includes a net reduction of $41,000,000 in the . cash holdings of all the National banks in the country and a loss of $13,000,000 cash re ported by the New York City Trust Com panies, together with the known .addi tions to the circulating medium during this period, including $100,000,000 of gold Imported from abroad and $72,000,000 cash released by the United States Treasury. MRS. TOrXC JUMPS TO ESCAPE IMAGINARY FOE. Tillamook Woman Leaps Through. Window Pane In Her- Sleep- and Is Severely Injured. TDS ANUEI-.ES. Cal.. Jan. 8. (Special.) Her sleep disturbed by nishtiriare. In whloh she thought some' cruel person was pultiniT lier hair. Mrs. J. N. Toting, 3S years of age. who arrived Irom Tilla mook. Or..- the day . before yesterday, sprang screaming from her bed in an apartment-house on Elm avenue. lymjr Beach, shortly after midnight last night, and leaped through a window of heavy glass to the ground. five feet below. Here she was seized and awakened. The woman's feet were gashed' by the glass and the knuckles of her hands were lacerated; She bled profusely until her wounds were dressed by Dr. . Seth C. Felt, who had been called in by the landlord. - - - llpiisii il&iliiSllllllSI' j llllllilSl WILL BE READYTO E Heney Promises Inside Facts oh Fulton. 7 HAS MADE GOOD WITH OTHERS Will. Present Legal Proof When . the Time Comes. - - WILL KEEP FULTON BUSY Tanrl-Frand Prosecutor Tells of Roosevelt's Wish to Show Trust Magnates They Have a ' light on Their Hands. LOS ANGELES, Cal., Jan. 8. (Special.) 'Francis ' J. Heney. who stopped oft in the city between trains today on his re turn to San Francisco from an extended trip through the East, asserted to The Oregonlan correspondent that . he would be ready to substantiate with legal evl dence, when the time should come for so doing, all he has said about Senator Charles W. Fulton,' of Oregon, and all that he may say in the future about him. 'I haven't seen Senator Fulton's let ter," said Mr. Heney, "and therefore cannot undertake ' to answer it.' Any thing I have ever said about Senator Ful ton for publication,, and anything I may say In the future for publication about him, I will be ready to substantiate "with legal evidence when the. proper time and opportunity arrive. ... Reminds Fultonor Others. "In the meantime, I wish to call Mr. Fulton's attention to the fact that Mitch-' ell,. Williamson, Jones, Mays and even Steve Puter were equally positive In de claring they had done no wrong and' that I would not be able to make good. More over, It my memory eerves -jne right, Abraham Ruef and Eugene Schmltz, as well as several captains of Industry, were singing the same song a&a." "The public of Oregon and the public of California now . know that I do not make statements against the reputation of men without being able to 'make them good whenever I think the time is right to do so. When I start on Fulton, if I ever do, I will keep him busy confessing and avoiding, as he has attempted- to do with reference to the Brownell letter. I will give the public , of Oregon the fuH inside . facts in regard to the Brownell letter before I finish my work in that state." Roosevelt's Fervent AVish. Mr. Heney told of "visiting and Inter viewing President Roosevelt, and quoted the latter as saying in connection with the prosecution of corporation lawbreak ers, as follows:' . "'Oh, I wish I -were just starting on my second term! I would make Harri man. Rockefeller and others of their kind think they had' a fight on their hands.' " That the great natural resources of the Nation . are passing so rapidly into (the hands of corporations and individuals. 5ST1 CHARR THE GRAND SERENADE BY OREGON'S GRAND with the result that the coming genera tions would find themselves with hands tied and a curse on their lips for the people pf the. present time,, was one of the' assertions made by the - speaker.- East Favors' Taf t. ' Mr. Heneyestated that In the Bast there was a. strong sentiment favoring Secre tary Taft for the next nominee of the Republican, party, though at. the present time there is much opposition expressed .to the reforms that are biamed for the present financial' difficulty. Fram San Francisco Mr. ' Heney will go almost directly to'Portland to. try' a case set in the Federal Court for January 13. Three weeks', have been consumed 'on' his present trip. DIVORCE IN WASHINGTON Mrs.- Williams, of Salem, Brings ' Suit in National Capital.. OREGONIAN NEWS BUREAU,. Wash ington. Jan. 8. Mrs. Ella Royal Will lams has brought suit against .her hus band. Walter Prescott Williams, of Sa lem. Or., now clerk in the -General Land Office in this city, to compel him to sup port his wife' and -daughter. Merle. ' W'illlamsshas a salary of '11800, but his wife declares he contributes nothing to support his family. The -Wllliamses Were married in Salem September 16, 188S. CONTENTS TODAY'S PAPER The Wetbr. YESTERDAY'SrT-MftJtlmum temperature, degrees; minimum. 44. TODAY'S Rain; brisk southerly wind. . National. Fowler prepare asset . currency bill 49 . for House. Page 2. Williams and De Armond become reconciled in House . Page 3. Brazilian squadron to -meet American- fleet. Paa-e 3. politics. Bryan speaks at Chicago on aristocrats and democratic viewpoint. Page Judge O'Brien tells why Demo crate fail. Page 2. " Domes tic. Governor Wlllson. of Kentucky, recommends ; measures agulnst raiders. Page 6. Italian at Denver accused of murderlna three persons. . Page 3. - Three Nevada safe-robbera caught. Page 't. Receivers appointed for Chicago Great West ern Railroad. Page 1. Thaw's lawyers spring ' surprise on Jerome. Page 4. ' . John R.- Walsh testifies. In his own defense. Page 3. - Helze loses control of Mercantile National Bank of New York. Page 1. Compromise settling rent strike In New York. Page it. Russian arrested In New York charged with - wholesale crime. Page -4. Pacific Coaet. New administration takes charge of San Francisco. Page 3. Tillamook woman, walking In sleep, Jump through window at Los Angeles. Page 1. Heney reiterates ability to prove charges against Fulton. Page 1. Young college girl mysteriously -disappears from her home In Eugen,e; found later at Albany. . Page 1. Union labor in convention at Tacoraa, passes 'many resolutions., page sV..- . . -Shoplifter caught In the act at Albany.' Page 6. Vancouver man mysteriously missing for' two weeks. Page 6. . . .- . Oregon City .-to' have another paper mill. Pag-a . .. Commercial and- Marine. Wholesale grocery trade nearly as good as year ago. -Page 15. . ' General selling weakens wheat markets. Advance In stock jrlces checked. . Two vessels clear with full cargoes of wheat. January will be a record breaker. Page 14. ' Portland and Vicinity."' Annual meeting of Chamber of Commerce held. Page 10. Transportation committee ' of Chamber of Commerce' makes annual report. Page 10. Business men gather at annual banquet of Chamber -of Commerce. Page 10. P. A. Marquam again loses suit against Ross Bank and others, page 5. City Council " authorizes prosecution , of local trusts. Page 11.' Story that Heney aided Bourne to obtain appointments of Schuebel. ' Page 11. Louts Allen finds course of true love rough. Annual exhibition of Oregon Poultry Asso'i ciatlon opened. Page 7 Portland & Seattle Railway publishes Its first tariff - sheet. - Page 14. ' v ' -rrTnTrTTl ' 7 RECEIVERS NAMED FOR BIG RAILROAD Great Western Cannot Pay Its Notes. . WANTS TIME TO ISSUE BONDS Money Borrowed for Recon struction of Road. . PANIC . AFFECTS', CREDIT - Has Spent $1 9,000.000' on Im provements and Owes Over $10,- 000,000, Duo liargely This 'Year Crippled by Strike. THE CHICAGO GREAT WESTERN. The Chicago Great Western, Railway runs from Chicago to Oelweln, . Ia.F when it forks, one line running southwest to Kansas City, the other 'northwest to, Minneapolis and St. Paul, while the- main stem extends to , Omaha. Its principal branches run . from Randolph, Minn., to Mankato, Minn. ; from Randolph to Winona, Minn. ; from Osage, Minn., to Slmp- - son. Wis..;- from Hayfield, Minn., to Clarion, la. The mileage of these lines is 1474. There are also-some smaller branches. - ST. PAUL, Jan. 8. Judgr Walter X Sanborn, of the United States Circuit Court, today "appointed A. B. Stlckney and Charles F. Smith, both- residents of St. Paul, receivers for the Chicago Great Western Railroad. A, B. Stiqk ney Is now president of the road. Kel ogg at severance, or St. Paul, were appointed attorneys for-the receivers. The appointment of receivers fol lowed inability of the company to meet obligations falling- due in, 1908, -and failure to secure an extension of time. Theybollermakers strike is given as a partial cause of the financial straits Of the road. It .Is alo pointed out in the proceedings today -that during the last 10 years the road has expended $19,- 000.0OD In reconstruction. A . petition for a receivership was filed on behalf of the stockholders and the finance committee by John A. Hum berg, of Minnesota; JGeorge P. Meyer, of New York, and Ward Cummtngs and Alexander Wallace, of Great Britain As oon as the petition had been filed an answer wag filed on behalf of. the board of directors, which met today and voted to become, a party to the re ceivership proceedings. In atking for receivers, Mr. Kellogg said: Xotes Have Gone to Protest. The 'capital of the" Chicago Great Western consists of four classes of stock, but two of which neid be considered in the. receivership proceedings. These ar preferred A and the debenture stock each of which renresenta BO per pent of the original first mortgage bonds. The preferences of these two classes of stock are secured by a trust deed to the Manhattan OLD PARTY TRIO SERVING THE ,RE PUBLICAN PARTY N Trust Company, of New Tork. There will be a default in the payment of these obliga tions January 1A. Mr. Kellogg' said that the Chicago Great - Western owes $10,653,414, now due and falling due within the' next four years, ' of which 'notee to . the amount of $546,000- have gone to pro test. He continued: The sum. exceeding 1 10,000.000! is pert of 19,000,0ft expended by the Great Western In the last 10 years, and tor the mo0t part In the last five years. In rebuilding the rocd. New steel bas been laid,, double tracks have been built, grades have been reduced and new bridges aw) terminals have bean con structed. There were due last month nates to the amount of S50.000 and there will be due durui? the rest of January notes aggre--satlng 2S3.200 while the total amount ot ob ligations due during 19CS Is i3.S42.545. Trust Fund to Pay Interest. Mr. Kellogg said further that, while the Chicago Great Western is an Illi nois corporation, it operates in Illinois, Iowa, Indiana and Missouri. It owns terminal lease of a line from St. Paul to Minneapolis. In addition, the road owns all the stock and operates the Kansas City & Fort . Dodge Railroad, a line about 400 miles long. This line Is mortgaged for $12,000,000, 42 per cent ViTI.I. SOT ALLOW WOMEN TO ' ATTEND SECOND THAW TRIAL,. Justice Dowling. of Its cost. The Great Western - also has a lease of this line, by the. terms of which the. Great Western Is to guar antee the interest on the bnds. The Chicago Great. Western places In a trust fund. SO per, cent of the joint earnings of the Great Western and the Fort Dodge Railroad, and put of this trust fund the Great1 "Western- pays the operating expenses of the Mason City road, the remainder of the truet fund going to guarantee the future interest on the $12,000,000 bonds. The Great Western, however, has the use of this accumulating interest fund, and there Is now" in the fund 1,289,624. The Great Western also owns stock, under similar conditions of the Wisconsin, Minnesota & Pacific, which is bonded to the exent of $5,811,000. Fifty per cent of the earnings of this' road goes Into the trust fund. In which there is now). available -,.$499,238.; The Great Western' also owns 'the' stock" of. the DeKaib .& Great--Western, capitalized at $100,000. . .. J.. .: .' Must Prevent Attachment. " Mr. Kellogg eald t'hat'uridef the laws of the states 'In "which the Great Western operates, creditors might se cure an attachment on its property, thus wrecking the road, and preventing its fulfilling its' obligations to the public' ' Primarily oh this ground, the possibility that it might be prevented from . performing Its functions as a common carrier,- Judge Sanborn issued the order for t.ie 'appointment of the receivers. ' He alos gave ae additional ground the fact that a judgment of $70,000 had already, been secured against the road. - NOTEHOLDERS MEET ST1CKVEY Agree to Receivership, Pending Is sue of Bonds. IjONDON. Jan. 8. The meeting of the holders of notes of the Chicago Great Western Raiiroad Company with A. B. Stlckney, president df the company, was held this afternoon. It was decided to appoint a. receiver, to maintain the status quo during the' time necessary to prepare a first mortgage bond covering all the debts or the roaa, ana to. od tain a vote of the stockholders on this measure. There were many note-hoid ers at the meeting. Mr. Stlckney, addressing .the note holders,. dwelt upon the financial con ditions in America which interfered with the payment- of the notes. Only one Interested firm. ' Keyser & Co., which has la nee sales of the notes ma turing in March, opposed the receiver ship.. Mr. Stlckney said: The Chicago Great Western fortunately haa no mortgage. It Issued a lot of notes which matured during a time of financial deoreselon. as usually Is th case,. and con sequently we could not pay .them. A great majority of the note-holders were perfectly willing to extend the time of the notes, but some of the holders could not be reached nil It was uncertatn what they might, do. The committee' thought It best, under the circumstances, to place the property In con trol of the court during the time necessary to issue, mortgage bonds and sell them. In ordinary time it would take three months to issue and sell these bonds, but how long It will .take to sell them under present condi tions is problematical. Failed ' to Refund Debt. : NEW TORK. Jan. . President Stickncy and C. A. Severance, of coun sel for the Chicago ' Great Western Company, went to London a few weeks ago to endeavor to refund the notes by a bond Issue and to secure foretgn cap ital to secure the company's urgent needs. The stocks and bonds are large ly held abroad. Business Men Patrol Streets. MUWIE, lnd.. Jan. 8. Streetcars ran today on all Munclf lines without dis turbance. The militia is confined to quarte.rs, while the streets' are patrolled by 500 business and professional men sworn in as deputiea. YOUNG COLLEGE GIRL RUNS AWAY Wmnifred Kelly Is Lost From Home. . FOUND LATER AT ALBANY Registers at Hotel Under Her Own Name. EUGENE IS MUCH UPSET Entire I'niversity Closes and Is Or ganized Into ' Searching Parties . Who Work All Day In- Rain. Girl Makes No Explanation. ALBANY, Or., Jan. 8. (Special. ) Miss Winifred Kelly, a pretty co-ed at the State Unerslty: daughter of Mr. and Mrs. Abraham Kelly of. Eugene, and niece of J. F. and G. H. Kelly of the Booth-Kelly Lumber Company, who -had been mysteriously missing since last night from her home In Eugene, was fo.upd in this city tonight, regis tered at. the Rubs House under her own name. Sheriff D. S; Smith had received word from Eugene to be on the watch for her, as it was thought she might have taken a train from that city for Albany last night. On looking over the hotel register, he was surprised to see her name, and immediately notified F. J. Miller, who Is a connection of hers. Mr. Miller, a brother of Consul Gen eral Miller, of Shanghai, went at once tp the hotel -with his sister. For a long time there was no response to their re quests to be allowed to enter the room where she was, but finally Miss Miller alone was allowed to go in. To her Miss Kelly said that she had come away from home simply to X'isit friends at Albany. Inasmuch as she carried no luggage, and had no more than enough-money ' lo""pay her , hotel bill, this statement looked a Jittle strango to the Millers. However, she said that she was going back In the morning. . She was finally persuaded to accompany Mr. ' Miller and his sister home for the night, and will take the morning train for Eugene. Miss Kelly refused to make any ex planation of her sudden trip, other than that she had "come to visit friends." , She would have nothing to say as to the motive, and when asked If she bad had a quarrel with a young man, she maintained a strict silence. It Is thought that one of two reasons actuated the girl to run away from home. ' Either she had had a quarrel with some young man, or there had been some trouble at home. " WHOLE. COLLEGE IX SEARCH Thought From Previous Actions That Girl's Departure Is Planned. UNIVERSITY OF OREGON, Eugene, Or.. Jan. 8. (Special.) Miss Winnifred ' Kelly, daughter of Abraham and .Mrs. Mattle Kelly, of Eugenp, and a sopho more in the University, disappeared from, her home and surrounidings as complete ly as If she had been swallowed up by an earthquake. The last seen of the girl in Eugene was at 6:20 Tuesday night, at the postofflce, where she. was seen writ ing postal cards. From there on her whereabouts were an absolute mystery. All night the girl's parents, with a small party of -searchers, sought In vain for their daughter. At noon today Presi dent Campbell, of the University, organ ized the entire student body Into search ing parties, and these, with the addition to their ranks of many townspeople, searched every foot of ground and every nook, corner and outhouse within a ra dius of a mile of the city boundaries. Although a drizzling rain fell during the entire day, the searchers never gave up until darkness rendered further work in that direction fruitless. May Have Planned Runaway. The young lady's actions yesterday af ternoon have led some to think that the disappearance was premeditated. She spent part of the afternoon at Profes sor Hawthorne's, where she was In com pany with his daughter. At S o'clock she left for her uncle's, George Kelly, of the Booth-Kelly Lumber Company. The girl stayed -there until about 6:10 and during her visit, so her aunt told a reporter, appeared to be very nervous and kept asking what time It was. When she was asked to stay for supper she declined, saying she had been Invited out to dine at the Zeta Iota ' Phi Sorority House. Upon Inquiry it was learned that she had not received -such an invitation and that she must have told this to hide her ac tions after leaving there. Anxious About Train-Time. From here she must have gone directly to the postofflce, where she was seen by Postmaster Burns. Because of the girl's asking so often in regard to. the time while at her Uncle George Kelly's, many advanced the theory that she wanted to catch a train. The Southern Pacific sta tion agent did not remember of any one answering to ' Miss Kelly's description purchasing a ticket for that train, and the conductor is positive that she did not pay her fare- out of Eugene yesterday evening. The mother was completely (.Concluded .on Fag ) ' V